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Old 09-04-2008, 11:57 AM
 
Location: Montrose, CA
3,031 posts, read 7,879,763 times
Reputation: 1925

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Quote:
Originally Posted by bentlebee View Post
Why does it matter if the rates went through the roof, if you pay them off every month?

I never look at my rates since I pay it off and I never have to pay interest on them, so why should I care....only if I would stop paying them...than it can be important.
Well, and the thing is...even if that was the ONLY credit card he had, there's no way it was going to affect his scores by more than a few points. A $100 limit card just isn't going to be that big of an impact on anyone's credit score unless you're paying late. I'm betting something else was going on to negatively impact him.
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Old 09-04-2008, 12:02 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,116,995 times
Reputation: 1008
I said my OTHER credit cards. Not my Gas Card.

Quote:
Originally Posted by bentlebee View Post
Why does it matter if the rates went through the roof, if you pay them off every month?

I never look at my rates since I pay it off and I never have to pay interest on them, so why should I care....only if I would stop paying them...than it can be important.
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Old 09-04-2008, 12:05 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,116,995 times
Reputation: 1008
Really? Are you saying this from experience or being in the industry?

I have done credit repair for about 10years, and been in the mortgage industry for at least 6, and I'm speaking from my past experience.

Credit scores ARE NOT based on your credit limit but what the balance to credit limit RATIO is.

If you have 10 cards with 100 dollar limits...and they're all at 35 bucks each...that's 35% of the limit.

If I have a 1million dollar credit line..and I owe 500k on it...that's 50% of the limit. Anything over 35% of your credit limit WILL affect your score.

Quote:
Originally Posted by SuSuSushi View Post
Well, and the thing is...even if that was the ONLY credit card he had, there's no way it was going to affect his scores by more than a few points. A $100 limit card just isn't going to be that big of an impact on anyone's credit score unless you're paying late. I'm betting something else was going on to negatively impact him.
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Old 09-04-2008, 12:16 PM
 
Location: Montrose, CA
3,031 posts, read 7,879,763 times
Reputation: 1925
Quote:
Originally Posted by renriq02 View Post
Really? Are you saying this from experience or being in the industry?

I have done credit repair for about 10years, and been in the mortgage industry for at least 6, and I'm speaking from my past experience.
ORLY? Then you should have known better than to keep a card capped out, right?
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Old 09-04-2008, 12:19 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,116,995 times
Reputation: 1008
This is when I learned that you need to PAY before the credit card REPORTS IT.

I never said when I learned about this either...

Quote:
Originally Posted by SuSuSushi View Post
ORLY? Then you should have known better than to keep a card capped out, right?
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Old 09-04-2008, 01:19 PM
 
Location: Pennsylvania, USA
5,217 posts, read 4,122,372 times
Reputation: 908
Quote:
Originally Posted by HighPlainsDrifter73 View Post
Tristan, hopefully you will not be responsible for any deficiency and that there was wording in the contract to that effect.

As I've mentioned in many threads I live in a state where the loan is secured only by the property.. I believe that is called no recourse?

Anyway, short sale benefits both myself and the bank.. and the banks agree to take less and forgive the rest of the principle debt. Traditionally they issue a 1099 that would have to be claimed as income on your tax return (can you say OUCH!! that would be like saying i Made double.. I'd never catch up!) but thanks to the Mortgage Debt Relief Forgiveness Act passed earlier this year, the tax is forgiven on the debt if:

A) the home is your primary residence
B) is the first mortgage on the home

And there something else about only the amount of the original mortgage balance and not the refi'd mortgage..soemthing to that affect.

And I will be certain that the wording is all proper in the closing (well I will ask my attorney too!)
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Old 09-05-2008, 07:42 AM
 
Location: Eastern Long Island
1,280 posts, read 4,190,024 times
Reputation: 749
I'm glad things are working out for you Tristansmommy, as a fellow LIer I've followed your story. I have a question, did the IRS notify you that they were placing a lien? It almost sounds like you had no idea.
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Old 09-05-2008, 08:09 AM
 
Location: Pennsylvania, USA
5,217 posts, read 4,122,372 times
Reputation: 908
Quote:
Originally Posted by KellyFG View Post
I'm glad things are working out for you Tristansmommy, as a fellow LIer I've followed your story. I have a question, did the IRS notify you that they were placing a lien? It almost sounds like you had no idea.

Hi,

They did send some notices. I had hired JK Harris to work on it with me, but in fighting for my home and some other things came up I stopped the service.

I knew I had some tax issues, but I just didn't have the money to address it at this tim. I planned to and was looking into JK Harris to help me work it out. I have always had a regular paycheck with taxes removed, and when I became self employed I'll admit I didn't manage that aspect very well.. that and my husband had some tax stuff prior to our marriage (he's terrible at managing papework etc.. I do all that and wasn't aware of it.. I dont think he was either).

So they hit us with the lien. The problem was that we were already starting the foreclosure process and deciding to short sell. I couldn't come up with the money I needed too AND come up with money to a) find a rental for first and last b) moving expenses and c) tied us over while we work on business in the new location. I also didn't have enough time to get the Feds to remove the lien, which you can do in a short sale situation, in time to get the house sold to the buyers I had lined up ( I sold rather quickly!). Even if I didn't have the buyers it would have gone to foreclosure possibly before the lien could be removed.

The bank agreed that it was in their best interest to pay a portion ( I will be bringing some money to the closing table too for the lien) rather than loose the very good buyers with very good offers and have it go to foreclosure.

This gives me a clean slate too.

I'm happy to report that I've now got us on a tight budget in our new place (we haven't moved yet) and have learned from our mistakes about what I need to do.

And getting OFF LI is crucial.. it's just way to expensive for a young famly to make it here. My costs across the board are going down nearly 50%! My bills are being cut from over $6,000 month for the basics (which included the mortgage) to $3000 and that $3000 includes the rent I will be paying.
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Old 09-05-2008, 08:24 AM
 
Location: Eastern Long Island
1,280 posts, read 4,190,024 times
Reputation: 749
Good luck with your move! I remember from previous posts that you & your DH enjoy being self employed, but its not for everyone. My DH ran a small business for many years & while he really enjoyed being the boss & having some freedom the responsibility of taxes & other things sometimes make it wiser to "just get a job".
I hope you & your DH will like your new location (I'm assuming its off LI) and I'm sure you'll have an opportunity to be homeowners again if you can fly right for a while.
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Old 09-05-2008, 09:37 AM
 
Location: Pennsylvania, USA
5,217 posts, read 4,122,372 times
Reputation: 908
Quote:
Originally Posted by KellyFG View Post
Good luck with your move! I remember from previous posts that you & your DH enjoy being self employed, but its not for everyone. My DH ran a small business for many years & while he really enjoyed being the boss & having some freedom the responsibility of taxes & other things sometimes make it wiser to "just get a job".
I hope you & your DH will like your new location (I'm assuming its off LI) and I'm sure you'll have an opportunity to be homeowners again if you can fly right for a while.

Thank you ...yes, we're moving to PA.

I think we've learned some lessons.. and honestly. .I am better at managing the adminstrative part something I wasn't reallydoing. In PA Im' going to take the reins.. my hubby will deal with one aspect and I will make him stick to other aspects.. if you knwo what Imean.. so that it's all under control.
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